Question: A manufacturing process for a widget has Three stages and involves 4 parts. In Section A parts 1 and 2 are assembled. In Section B
A manufacturing process for a widget has Three stages and involves 4 parts. In Section A parts 1 and 2 are assembled. In Section B parts 3 and 4 are assembled. Finally in Section C the two assemblies are welded together and then painted and packaged. Sections A and B have 10 assembly machines each. Each assembly machine in Section A has an output of 20 parts per hour and each machine in section B has an output of 15 parts per hour. Section C has 5 combination welding and painting machines each of which has an output of 35 parts per hour. All machines need one worker each to operate. Purchase costs of the parts are follows: Cost of purchasing part 1 $0.21 Cost of purchasing part 2 $0.58 Cost of purchasing part 3 $0.61 Cost of purchasing part 4 $0.89 Cost of assembly in section A is 0.50/part, cost of assembly in section B is 0.30/part and cost of welding and painting is 0.35/part. At present, the manufacturing process runs for 120 hours a month excluding scheduled maintenance times. a) What is the output of this process? What is the bottleneck? What is the total cost of the process? What is the cost per unit? b) If we can add another shift to one section in the process to increase its capacity, where would it be? What is the output of this process? What is the new bottleneck? What is the total cost of the process? What is the cost per unit? c) If on top of doubling the shift as discussed in part (b) if we add four extra assembly machines to Section A and 3 extra combination machines to section C what is the output of this process? What is the bottleneck? What is the total cost of the process? What is the cost per unit
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